The President estimated the losses of Russian fertilizer producers at $1.6 billion

Russian fertilizer producers lost almost $1.6 billion due to various external restrictions. This was stated by Russian President Vladimir Putin during a meeting with members of the government.

“Our fertilizer producers also faced a similar problem. Their losses are about $1.6 billion. For example, the cost of imported spare parts for equipment and equipment as a whole increased by 40%. The growth of costs in financial transactions is about 10%,” he said.

Thus, Putin spoke about how the refusal of Western countries to fulfill their obligations under the grain deal affected Russian farmers and fertilizer producers. “For Russian agricultural producers, for enterprises producing fertilizers, this turned into direct losses and losses,” he said. According to Putin, due to a discount of 30-40% on Russian grain on world markets, farmers have lost about $1.2 billion.

The head of state also noted that due to the increase in the cost of chartering sea vessels for international financial settlements, the profitability of deliveries has halved.

On July 17, Russia announced its withdrawal from the grain agreement, which was signed on July 22, 2022 by representatives of Turkey, the UN, Russia and Ukraine. Press Secretary of the President of Russia Dmitry Peskov explained this by the failure to fulfill Russian conditions under the grain deal. Later, he noted that Ukraine used the grain deal zone for military purposes and this “is not a secret to anyone.”

On July 22, separate agreements were concluded with Moscow and Kiev. The first is for the export of Ukrainian grain from three ports, including Odessa, Yuzhny and Chornomorsk, the second is for assistance in the export of Russian grain and fertilizers. The Russian authorities have repeatedly noted that the second part of the deal is not being implemented.